6 August 2019
Dear member,
basketballscotland Financial Statements 2018-19
At our 2018 AGM and in our company accounts for 2017/18, we reported that we had faced a challenging year financially after finding that there were fundamental inaccuracies between the reports generated by our club membership system and our finance system. After a thorough investigation we learned that our profits had been overstated due to these inaccuracies.
After a year spent addressing the issue through recruiting additional financial expertise, implementing a new accounting system and reviewing and strengthening our financial processes, we believe we have turned an important corner in getting our finances back into a healthy position. The Board believe that the company’s financial position is currently stable and improving.
During the 2018-19 year, we delivered an operating surplus of £23,171. However, in order to account appropriately for the amounts previously overstated, a significant amount has had to be written off from the balance sheet.
This means that, despite the operating surplus for the 2018-19 financial year, we will post an overall loss in our company accounts due to the steps taken to ensure an accurate financial picture as we committed to do last year.
sportscotland has been kept aware of the issue at every stage and are fully supportive of the steps taken and the plan of action. They have made a commitment to support us financially through the period ahead.
In April 2019, the Board approved a long-term financial plan. Our plan forecasts that we will be deliver a surplus in the 19-20 financial year and beyond. Between now and 2021/22, our financial plan will allow us to deliver on all our obligations to our members whilst delivering an annual surplus.
As well as contracting additional financial management expertise, we have also added a new independent advisor to our Board as an additional layer of quality assurance. We will continue to use independent financial expertise to ensure that we have the type of rigorous scrutiny that we believe our financial systems require.
Due to the processes we have introduced, we are confident that this issue has been addressed and that we can deliver on the forecast plans, and return to our desired level of financial reserves by March 2022.
Yours sincerely
David Davies
Chair
Financial Statements, Income and expenditure account 2017-18
To view basketballscotland’s Financial Statements, for 2017-18, please click HERE.
For a further explanation regarding the Income and expenditure account, please click HERE
